Question: Distinguish between the auditor's potential liability to the client, liability to third parties under common law, civil liability under the securities laws, and criminal liability.

Distinguish between the auditor's potential liability to the client, liability to third parties under common law, civil liability under the securities laws, and criminal liability. Describe one situation for each type of liability in which the auditor can be held legally responsible.

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The auditors legal liability to the client can result from the auditors failure to properly fulfill his or her contract for services The lawsuit can b... View full answer

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